Answer Carefully.

Divisional Income Statements with Support Department Allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 2017, are as follows: Tech Services Department $715,000 Purchasing Department 438,000 Other corporate administrative expenses 496,000 Total expense $1,649,000 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: Tech Services Purchasing Consumer Division 400 computers 5,100 purchase orders Commercial Division 250 9,500 Total 650 computers 14,600 purchase orders The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Consumer Commercial Revenues $6,974,100 $6,489,500 Cost of goods sold 3,874,500 3,276,900 Operating expenses 1,368,000 1,622,200 Prepare the divisional income statements for the two divisions. Do not round your interim calculations. Horton Technology Divisional Income Statements For the Year Ended December 31, 2017 Consumer Division Commercial Division mu Operating income before support department allocations Support department allocations: 0000 Quod Total support department allocations